Aditya Birla Capital's net profit jumps 42% to ₹429 crore

Aditya Birla Capital's net profit jumps 42% to ₹429 crore
The consolidated net profit of the Aditya Birla Capital Ltd rose 42 per cent year-on-year to Rs 429 crore on back of strong performance across businesses. The consolidated revenue of the company grew 26 per cent on-year to Rs 5,859 crore.

The Company, through its subsidiaries, continues to maintain its track record of delivering strong performance through market and macroeconomic cycles, with its diversified business model.

NBFC and housing finance business:

The overall lending book of the company rose 22 per cent on-year to Rs 69,887 crore, with strong focus on retailisation, with a total active customer base at over 4.8 million.

The NBFC loan book grew 26 per cent on-year to Rs 57,839 crore, while Retail, SME and
HNI loan book grew 39 per cent year on year, leading to its contribution in the overall book being the highest ever at 64 per cent as on June 22, vis-a-vis 58 per cent in the previous year. Gross disbursement rose 3.1 times than previous year to Rs 8,039 crore in the quarter under review.

Whereas, loan book of housing finance grew 7 per cent on-year to Rs 12,049 Crore, with 94 per cent retail mix. Gross disbursal continues to be strong at Rs 867 Crore in Q1 FY22; in line with the business focus. The affordable housing segment contributed 48 per cent of disbursements.

Mutual Fund Business:

The mutual fund business of the company has also showed a sharp growth in the quarter under review. The quarterly average assets under management stood at Rs 2.82 lakh crore as on June 30, with domestic equity quarterly average aum rising 14 per cent to Rs 1.17 lakh crore.

Monthly systematic inflows was at Rs 898 crore in June, 2022. Nearly 2.77 lakhs new SIP accounts has been registered in the first quarter of the financial year, with a growth of around 23 per cent on-year.

Insurance Businesses:

Total gross written premium of life insurance and health insurance grew 53 per cent on-year to Rs 3,250 crore in Q1FY23.

In life insurance space, individual first year premium grew 26 per cent on-year to Rs 409 crore and renewal premium grew 18 per cent on-year to Rs 1,285 crore, of which 74 per cent was collected digitally.

While, gross written premium of health insurance grew 71 per cent on-year to Rs 630 crore, with retail and rural contributing 59 per cent of total business. The net loss has induced to Rs 71 crore, as against Rs 128 crore in the previous year.

Way Ahead:

Going forward the company is expected to leverage technology and analytics to grow revenue, improve customer experience, optimise costs and build robust and scalable business model.

Company's focus will be on customer acquisition through direct channels across businesses and increasing their geographical presence.

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